About United Airlines Holdings, Inc.
United Airlines Holdings (formerly United Continental Holdings) operates through its primary United Air Lines subsidiary. United Airlines is a leading passenger and cargo airline operating more than 4,900 flights a day to more than 360 airports. It serves destinations across five continents from US hubs in Newark, Chicago, Denver, Houston, Los Angeles, San Francisco, Washington, DC, and the US island of Guam. In addition, United is a member of the Star Alliance, a marketing and code-sharing group (the largest in the world) that includes several international airlines. In 2019, the company changed its name to United Airlines Holdings, Inc.
United Airlines reports its earnings in three segments: passenger revenue, cargo revenue, and other operating revenue. Passenger revenue generates more than 90% of sales and other operating revenue (includes loyalty program MileagePlus miles sales) about 5%. Cargo revenue accounts for less than 5% of total sales.
United's mainline operations are managed through a hub and spoke system, which allows for the addition of new destinations from numerous cities using a limited number of aircraft. Its regional operations connect the hubs and allow for flights to smaller cities. This service is conducted through regional carriers branded as United Express, some of which include Republic, Commuter Air, ExpressJet, GoJet, and Sky West.
United is a member of the Star Alliance airline network, which provides reciprocal earnings, sharing of frequent flyer miles, access to airport lounges, and code sharing of flight operations (flights marketed under another carrier's brand name). It also has joint business arrangements with Air Canada, Lufthansa, Air New Zealand, and Avianca and Copa Airlines, which provide United the ability to integrate schedules and fares with those airlines.
The company runs a loyalty program, MileagePlus, which offers awards, benefits, and services to program members. MileagePlus members can earn travel rewards on United, United Express, and Star Alliance member airlines. It also offers a MileagePlus credit card through Chase Bank.
The company serves destinations across North America, as well as in Asia, Europe, the Middle East and Latin America. United leases airport facilities, gates, hangar sites, terminal buildings and other facilities at destination airports. It has major terminal facility leases at its hubs at Newark Liberty International Airport, Chicago O'Hare, Denver International, Houston Bush, LAX (Los Angeles), SFO (San Francisco), Washington Dulles, and A.B. Won Pat International Airport in Guam.
Domestic flights (the US and Canada) generate more than 60% of United Airline's global revenue, Atlantic with more than 15% and Pacific routes with for more than 10%, and Latin America about 10%.
United Airlines headquarter is located at Chicago, Illinois.
Sales and Marketing
United Airlines fares are sold through its direct sales website—www.united.com, the company's mobile applications, and through traditional and online travel agencies.
Its advertising expenses are more than $200 million annually.
United's operating revenue has seen an upward climb in recent years. Sales in 2019 reached $43.3 billion, up 5% from $41.3 billion the previous year. Passenger revenue increased $1.9 billion, or 5%, in 2019 as compared to 2018, primarily due to a 4.0% increase in traffic, continuing strong domestic demand, improvements in average fares in the Latin and Domestic markets, and increases in ancillary fees driven by improved product offerings. Cargo revenue decreased $58 million, or 5%, in 2019 as compared to 2018, primarily due to an approximately 3% decrease in cargo ton miles and a 2% decline in cargo ton mile yield.
Net income remained relatively at $3 billion in 2019, increased by $887 million compared with 2018. The increase was due to higher revenue by $2 billion with slight increase on their operating expense.
Cash at the end of fiscal 2019 was $2.9 billion, an increase of $1.1 billion from the prior year. Cash from operations contributed $6.9 billion to the coffers, while investing activities used $4.6 billion, mainly for purchases of aircraft and aircraft improvements, facility and fleet-related costs, and purchases of information technology assets. Financing activities used another $1.3 billion for the company's stock repurchase program.
United Airlines have announced several strategic plans in recent years, including several revenue-generating initiatives and plans to optimize their revenue, such as to add capacity, including international expansion and new or increased service to mid-size airports, and initiatives and plans to optimize and control their costs. The company also continue to explore opportunities to enhance its segmentation, including the introduction of Polaris, Basic Economy and United Premium Plus, and are implementing many programs and policies to improve the customer experience at all points in air travel. In developing their strategic operating plan, they make certain assumptions, including, but not limited to, those related to customer demand, competition, market consolidation, the availability of aircraft and the global economy. Actual economic, market and other conditions may be different from their assumptions.
In 2019, United Airlines' capacity growth was lower than planned due to the grounding of Boeing 737 MAX aircraft, among other factors, which adversely impacted their ability to execute their strategic operating plans. If they do not successfully execute their strategic operating plan, or if actual results vary significantly from their assumptions, their business, operating results and financial condition could be materially and adversely impacted.
In 1929 aircraft designer Bill Boeing and engine designer Fred Rentschler of Pratt & Whitney joined forces to form United Aircraft and Transport. Renamed United Air Lines in 1931, the New York-based company offered one of the first coast-to-coast airline services. In 1934 United's manufacturing and transportation divisions split. Former banker Bill Patterson became president of the latter, United Air Lines, and moved it to the Chicago area. In 1969 UAL Corp. was formed as a holding company.
A subsidiary of UAL Corporation merged with and into Continental in October 2010, with Continental surviving as a wholly-owned subsidiary of UAL. Upon closing of the merger, UAL became the parent company of both Continental and United Air Lines and UAL Corporation's name was changed to United Continental Holdings. The transaction created the world's largest airline. In 2013 United Air Lines, Inc. was merged into Continental to form one legal entity, and Continental's name and brand were changed to United Airlines, Inc. In 2019, the company changed its name to United Airlines Holdings, dropping all reference to Continental Airlines.
233 S Wacker Dr Ste 710
Chicago, IL 60606-6462
Phone: 1 (872) 825-4000
Employer Type: Publicly Owned
Stock Symbol: UAL
Stock Exchange: , NASDAQ
President: J. Scott Kirby
Chairman: Robert A. Milton
CEO: Oscar Munoz
Employees (This Location): 86
Employees (All Locations): 96,000
Los Angeles, CA
Palm Springs, CA
San Bruno, CA
San Diego, CA
San Francisco, CA
Santa Ana, CA
Fort Lauderdale, FL
Fort Myers, FL
Arlington Heights, IL
Mount Prospect, IL
South Elgin, IL
Saint Paul, MN
Kansas City, MO
Oklahoma City, OK
Myrtle Beach, SC
North Charleston, SC
San Antonio, TX
South Burlington, VT
Rio De Janeiro, Brazil
Taipei City, Taiwan
Tsim Sha Tsui, Hong Kong